A.M. Best Affirms Credit Ratings of United Insurance Company and United Re (Europe) S.A.

Business Wire

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of United Insurance Company (UIC) (Cayman Islands) and its subsidiary, United Re (Europe) S.A. (Luxembourg). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect UIC’s balance sheet strength, which A.M. Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

UIC’s very strong level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), healthy liquidity, financial flexibility, quality of capital and reinsurance program contribute to A.M. Best’s balance sheet assessment of very strong. UIC's operating performance has been profitable historically, driven by underwriting performance and investment income in most years. The results have fluctuated over a five-year period as a result of some volatility experienced in UIC's reinsurance underwriting and investment returns. The company realigned its investment strategy in 2016; healthy investment income was recorded in 2017 and is projected going forward. UIC’s overall operating performance is assessed as adequate.

UIC’s business profile was deemed to be neutral. This company is one of the longest tenured alternative risk vehicles rated by A.M. Best. UIC has an established reputation within the captive insurance market and its risk pooling programs have been its hallmark business since formation. Additionally, the company is currently in the process of expanding its profile by entering the U.S. insurance market.

Furthermore, UIC’s ERM is considered to be appropriate for its overall business risk profile.

This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.

A.M. Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.

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A.M. Best

Victoria Ohorodnyk

Financial Analyst

+1 908 439 2200, ext. 5326

victoria.ohordnyk@ambest.com

or

Steven M. Chirico, CPA

Director

+1 908 439 2200, ext. 5087

steven.chirico@ambest.com

or

Christopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.com

or

Jim Peavy

Director, Public Relations

+1 908 439 2200, ext. 5644

james.peavy@ambest.com